Also known as: fair cash values · fair market value
Written by attorneys · grounded in primary & secondary sources — see below
The price which would result from negotiation and mutual agreement, after ample time to find a purchaser, between a vendor who is willing, but not compelled to sell, and a purchaser who is willing to buy, but not compelled to take a particular piece of real estate.
Farah Fox held a lease on commercial space from Frostline Textiles. After the landlord breached repair obligations, Farah terminated the lease and vacated. A court calculated her damages to include the fair cash value of the lease on the termination date.
Fernando Farrell was appointed personal representative of his aunt's estate containing farmland and equipment. Within three months he prepared an inventory listing each asset with reasonable detail and stating its fair cash value as of the date of death along with any encumbrances.
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Finn Fletcher and other minority shareholders in a closely held company received a cash-out merger offer from the controlling group. The court required the offer price to reflect the fair cash value of the shares based on the company's assets and earning power.
Felicity French inherited property subject to a mortgage and later sold it. The IRS computed her basis by including the full amount of the mortgage debt because fair cash value at acquisition had equaled the debt plus her equity.
Frank Fisher, a shareholder, challenged a short-form merger alleging inadequate disclosures. The court measured the fairness of the cash price against the fair cash value of the shares determined by independent appraisal methods.
Floyd Franklin relied on Red Owl's repeated assurances and incurred expenses preparing to open a franchise. When the deal collapsed, the court awarded damages measured by the fair cash value of the lost opportunity to operate the store.
Fair cash value is the price a willing buyer and willing seller would agree upon after ample marketing time. The court may offset the deficiency by the amount that fair cash value exceeds the foreclosure sale price after subtracting senior liens. This prevents the mortgagee from obtaining a windfall by purchasing at a depressed price and reselling at a profit.
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The representative must list each asset with reasonable detail and state its fair cash value as of the date of the decedent's death. Encumbrances must also be noted for each item. The inventory must be prepared within three months after appointment and provided to interested persons upon request.
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Damages may include the fair cash value of the lease on the termination date. This measures the economic loss from losing the leasehold interest. The tenant may also recover reasonable relocation costs and other foreseeable losses without double recovery.
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…the city has “taken” their right to this superjacent airspace, thus entitling them to “just compensation” measured by the fair market value of these air rights. Apart from our own disagreement with appellants’ characterization of the effect of the New York City law, see infra , at 134-135, the submission that appellants may…